Our Taxing Times

Give them a break!

I have just dealt with another client who is indignant that he can't do his taxes and get his money because his employer has not released the W-2's yet. Get a life!!!

Gloving Taxes

I just read a article that an Oklahoma lawmaker wants to put gloves on fighting cocks. The background is that Oklahoma banned cockfighting. But this lawmaker wants to bring it back. In order to do that, he has to clean up the "sport". His idea is to put little gloves on the rooster's feet so it is not so bloody.
Gloving fighting birds is an idea we can laugh at but what about taxes? I don't know how many times I have to deal with clients who will do all kinds of silly stuff to get around a tax law or regulation that inconveniences them. If you don't like the law, work to change it. Trying to get around it is harder and makes you look silly.

Thanks to Seth's Blog for the link to the article.

Sales Tax Book

Many people are getting a new IRS publication in the mail. It is the sales tax tables for the Itemized deductions. Last year Congress gave taxpayers a choice between deducting the state and local sales tax or state and local income tax as an itemized deduction on the Schedule A. Pub 600 is the table to estimate the sales tax a household paid. (A whole lot easier than keeping every receipt). Besides the base figure, a taxpayer would add in any major purchase sales tax. This is compared to the state and local income tax withheld and paid in. The larger amount would then be used. If you have any questions, please give me a call.

Estate Tax

Change This has a very good explanation this week about why the estate tax should not be repealed. Unlimited Inheritance.

Double your refund

You might have seen the TV ads for a national tax preparation company offering you the chance to double your refund. What they hide in the fine print is that this is open to everyone not just their clients. You can find the details here. That means you can have your return prepared by anyone and still get the same chance to win as someone who uses their service. Even if you don't win the big prize, you could still win a smaller prize. Good Luck!
PS If you are not getting a refund you can still enter. The minimum grand prize is $1000.

It's here!!

Tax season has started. Business is beginning to pick up. I am looking forward to seeing everyone again this year. and if you know of anyone who is looking for a tax preparer, please think of me.

Refund anticipation loans

If you want you money back faster than the IRS will get it to you, MITC is offering refund anticipation loans (RALs) through HSBC. There are two options available, instant and classic. If you qualify, the instant loan could get you money in 5 minutes while the classic will be about 24 hours. Both will allow all fees, including tax prep, to come out of your refund. The down side is that there are additional fees on top of the cost to prepare the return.
If you want your preparation fees to come out of your refund, MITC has two programs which for a set fee will do just that. Just ask for more details.

E-filing is now open

Today is the first day to e-file 2004 tax returns. The IRS closes the system after the final extension due date in order to get the system up and running for they next year. Turn around time for refunds is still the same as last year. If the refund is coming in an IRS check it should be at most 3 weeks and for a direct deposit 2 weeks. The time can be shorted depending on the date e-filed. Once the return has been accepted, I will be able to tell you when the IRS expects it to sent. As always, there is no additional charge to e-file.

1040 Central

The IRS has opened up two consumer programs for the tax season, 1040 Central and Where's My Refund.
1040 Central, is taxpayer information. This is a quick place to find the IRS fact sheet and FAQs. There is info on finding a tax preparer, how to e-file and many other subjects. Down the page, is the link to Where's My Refund. This is the quickest way to find the status of you refund. Just as when you call the refund line, you will need the have the primary SSN, the filing status, and the amount of the refund shown on the return. Last year the IRS added a link to the refund page from their main page when refunds started being issued.
Kansas will also offer online refund checking on their web site. For Kansas, you will need both SSNs if it is a joint return. As of yet, Oklahoma has not added a refund checking option to their site. Once they do, I will let you know.

Online Filing

If you are planning on preparing your own return this year and are looking for an online filing site, McIntire Income Tax Center is offering online filing through our software company. At 1040.com, you can e-file your return online. The service also has a refund loan option. You will be able to start filing when the IRS opens e-filing for the year on January 14th.